Canada plans legislation to make railways more accountable

OTTAWA Feb 20 (Reuters) - The Canadian government, which
has pledged to make railways and shippers carry more insurance
for oil shipments in light of recent fiery accidents, said it
would introduce a bill on Friday to make rail transportation
"safer and more accountable."

It recently gave notice of intention to introduce "An Act to
amend the Canada Transportation Act and the Railway Safety Act"
and set a news conference for 12:30 p.m. EST (1730 GMT) to
announce the new legislation.

Ottawa was galvanized into action after a runaway oil train
exploded in Lac-Mégantic, Quebec, in 2013, leveling the heart of
the town and killing 47 people.

The costs of the cleanup and reconstruction far exceeded the
C$25 million ($20 million) insurance carried by the now-bankrupt
Montreal, Maine & Atlantic Railway, leaving federal and
provincial governments to pick up the tab.

The government said in October 2013 that it would require
shippers and railways to carry additional insurance "so they are
held accountable."

The model the government has been examining is loosely based
on the Ship-Source Oil Pollution Fund, set up in the 1970s to
cover big maritime oil disasters and financed with levies on oil
tanker shipments.

Government officials would not confirm what was in the bill
being introduced on Friday.